Link REIT (823 hk, NR), with its solid diversified retail-based property, is likely to be shelter for a Macro thunderstorm. A relative certain distribution policy also making Link REIT a better alternative to other mainstream blue-chips. Link REIT is required to ensure that the total amount distributed to unit holders shall be no less than 90% of its total distributable income for each financial year.

Fortune REIT (778 HK, NR ), a retail property REIT spun off by Cheung Kong, with high reliance on non-discretionary retails tenants (i.e. F&B, supermarkets and education), which still be able to show resilient growth despite the slowing down in the economy. Attractive dividend yield (~ 6%) also offer a relatively defensive strategy for income investors to migrate the downside risk. Fortune share price performance has outperformed other REITs, HSI and other HK property counters by 4-25% in the past three months. We believe the outperformance will continue under current volatile market.